Lovedoll UK said it has nowhere to store the dolls leaving them no choice but to hand them out as freebies.

It said the owner of the building, in Gateshead, was receiving complaints from neighbouring companies after they found out it was hiring the dolls out by the hour.

The closure comes months after Europe's first sex doll brothel, in Barcelona, was forced to shut less than a month after opening.

So far around £30,000 of used sex dolls have been given away to customers after they entered a draw to win a plastic girlfriend.

The landlord, Bizspace, confirmed the company had left and said the business did not fit with "company values".

A spokesperson for Lovedoll UK said: "The time we were given to move out of the business centre did not allow us to arrange transport, storage and a new premises.

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“A lot of people in the business centre have genuinely been sad to see us go”

Lovedoll UK

"So we had to make the decision to pack up the existing stock and just ship it out. Initially they only gave us 24 hours, but eventually we were given three days to move.

"We did not want to have any downtime, so decided giving away free dolls would be a good way of keeping the business running.

"A lot of people in the business centre have genuinely been sad to see us go, we have been there for a long time and so you get attached.

"Some didn't even know what we did - but a very small percentage didn't like it when they found out through the press coverage."

Lovedoll UK hit the headlines earlier this month after announcing they were doing a 'try before you buy' service – where clients could spend an hour with a doll before splashing out £2,000 on one of their own.

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A worker trims a doll's skin imperfections

The spokesperson added: "We have had a lot of people who say that they would love a doll but simply cannot afford one, so this is a way of giving back and supporting our customers.

"We feel that there are a lot of people out there that will be grateful of this offer, so its is just a kind gesture from the company.

"We think that it will broaden the scope for new customers and we want our business to be slightly different.

"This will spread the word about sex dolls and hopefully rid the taboo, because a lot of men and women can really benefit from this.

"A lot of people don't know about the sex-doll industry, so it is important to get it out there.

"This offer will be available until the end of the week - we have had hundreds of entries so far and some winners have cancelled their prize because they get catholic guilt.

"There has been a lot of submissions. All details will be accumulated into a list and then a name will be chosen at random.

"It is like a lottery lucky dip. It isn't for people who want a specific doll to look like someone - people with those needs should just contact our service directly.

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The dolls will attract randy punters with a preference for plastic

"You might get a really slim doll or you might get a doll that is more voluptuous.

"This deal is targeted is for someone who would find money an obstacle when purchasing a doll."

A BizSpace spokesperson said: "Having been made aware of the customer's business activity, which did not fit with our company values, we entered into discussions, following which the customer made the decision to leave."